Analysis Intermediate: Is Your Retirement Portfolio on Track?

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Choose wisely. There is only one correct answer to each question.

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1.
If you find that your portfolio is not on track and you plan to retire in just two years, which typically should not be an option?
Choose wisely. There is only one correct answer.
Tweaking your portfolio so that it's more aggressive. You should generally get more aggressive only if your retirement is far enough away--say, 10 or more years off. Otherwise, you may be taking too much risk.
2.
If your retirement is far away and you decide to switch to more aggressive investments to keep yourself on track, which of the following is least likely to help you?
Choose wisely. There is only one correct answer.
Bond funds. Of all the choices, bond funds are the least aggressive.
3.
How often should you reevaluate whether your portfolio is on track to meet your retirement needs?
Choose wisely. There is only one correct answer.
Every few years. You don't need to go through this exercise each time you take a look at or rebalance your portfolio, but it's a good idea to run through the numbers every few years so that you're not caught by surprise when retirement comes.
4.
When calculating expected returns for stocks, what number would be fairest to use?
Choose wisely. There is only one correct answer.
10% per year. Though stocks have sometimes performed better during past periods, we recommend a more conservative number--the roughly 10% per year that stocks have returned since 1926.
5.
To find out whether your retirement portfolio is on track, _______.
Choose wisely. There is only one correct answer.
Determine what your regular retirement income will be, excluding your income from your own savings. Since savings is much less predictable, you can instead focus on what your regular retirement income -- Social Security and your retirement plans -- will be.